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Federated plans to buy back $2 billion in shares of stock

SHARE Federated plans to buy back $2 billion in shares of stock

Federated Department Stores Inc., the second-largest U.S. department store company, said it would repurchase up to $2 billion in shares using the proceeds of asset sales since it acquired May Department Stores Co.

The buyback is in addition to a separate repurchase plan that has $383 million in shares remaining, Cincinnati-based Federated said in a statement Friday.

Federated has agreed to sell the Lord & Taylor division, sold its credit card accounts and is shedding up to 80 duplicate stores since it acquired May for $11 billion a year ago. It previously said it would use the proceeds of asset sales for such share repurchases and to pay off acquisition-related debt.

Federated plans to convert about 400 May stores to the Macy's name on Sept. 9, bringing the total number of those stores to more than 800. It is seeking a buyer for more than 760 bridal and formalwear stores.